Poinsettias and jobs: DEG finances Selecta one production in Uganda

As advent begins, the demand for poinsettias rises. Many of the young plants come from East Africa, where the climate provides ideal conditions for their cultivation. The German horticultural company Selecta one is expanding its operations in the region with its acquisition of Wagagai Ltd., a cutting farm in Uganda. And DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – is providing a long-term loan totalling EUR 16.5 million to the Stuttgart family business to fund this move. Some of the funds will go to modernisation work at the farm.

Selecta one is among the world’s leading German growers of bedding and container plants, perennials, grasses and cut flowers. Its customers range from large international producers to local garden centres. The group operates at 13 sites in Europe, Africa, Latin America and Asia, and, including the acquisition, now employs 5,000 people worldwide. The farm in Uganda secures Selecta’s long-term production capacity in East Africa.

The acquisition enables the Wagagai farm, which employs over 2,000 people, to continue operating. Social initiatives will also be maintained and provide an example for the further development of sites in Kenya and Colombia. The initiatives include an on-site health centre, and educational and community work programmes. The Wagagai Health Centre was established in 2002, also funded by DEG.

DEG has been supporting Selecta one in Kenya for years – both financially and in an advisory capacity. It provided an initial equity loan back in 2014 to expand production. It also promoted various Business Support Services, including health advice for female employees through the HERhealth initiative and a feasibility study on transitioning operations to solar energy.

“DEG is maintaining a decades-long partnership with Selecta one and Wagagai. Our recent financing provides scope for further growth to a family-run German company that stands for innovation and social responsibility. It also safeguards the existence of the Wagagai farm, which provides over 2,000 jobs,” said DEG CEO Roland Siller.

“The acquisition of Wagagai is more than a strategic investment – it is a continuation of shared values and a long-standing partnership,” said Per Klemm, CEO of Selecta one. “We are delighted to integrate Wagagai into the Selecta family with DEG’s help, and to build on the impressive foundation of horticultural expertise and social responsibility.”

Selecta represents high social standards, borne out by its MPS-SQ certification, which assesses the working conditions, health and safety, and rights of workers. Employees enjoy safe working conditions, above-average pay and additional benefits. Women make up the majority of the workforce and are supported through targeted initiatives.

German SMEs such as Selecta are one of DEG’s key customer groups, which DEG provided with a total of EUR 620 million in financing in 2024. As well as loans and equity investments for German companies, this includes financing for local enterprises that purchase German components, for example.

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